Thanks for updateWhen your wife goes to apply for the passport, they will accept the application for your daughter, but will give a form which you will need to sign in presence of the embassy/consulate officer along with your ID like passport etc. They will verify and transmit this form to the same passport office. The process delays the passport delivery by max 7 days or so. Your wife passport will come earlier and then your daughter's passport.
Also, please note after this if they flying out of Canada, you will need to give them a consent letter for your daughter (below 12), irrespective of the airline they are using.
I am planning to apply by mail not in person.
In that case what to do